Aerospace opportunities

An Expert's View about Aerospace in Mexico

Posted on: 27 Nov 2011

Mexico is the largest military and commercial aircraft market in Latin America. It has the second largest business aircraft fleet in the world and has a large private aviation services industry to service the oil and gas sector and provide executive transport.

Aerospace opportunities in Mexico The Mexican government is working to attract more aerospace manufacturing investment - creating opportunities for foreign suppliers. Market overview Mexico is the largest military and commercial aircraft market in Latin America. It has the second largest business aircraft fleet in the world and has a large private aviation services industry to service the oil and gas sector and provide executive transport. After China, Mexico and Latin America are forecast to be the second largest market for the Aerospace sector in the next two decades. The current government continues to be committed to developing the aerospace sector. Dozens of new international companies have invested in this sector over the last few years. There are currently more than 67 foreign aerospace suppliers (including several UK companies) comprising of around 190 firms. Key opportunities Mexico is today?s opportunity. That is why more than 16,000 foreign companies have had the confidence to invest in the country. More passengers are flying, a greater number of airlines are operating, and airports are upgrading and expanding both physically and operationally. Subsequently, opportunities are available in every aspect of the aviation industry. When the major contributors to the aviation industry grow (i.e. airlines, airports, etc.) so do those smaller to mid-sized firms that supply the inputs to these larger industry contributors. In general, best prospects for products and services in the general aviation / aerospace industry include: ?Aeroplanes parts and spare parts. ?Remodelling services. ?MRO and FBO services. ?Ground support equipment. ?Security systems. ?Identification systems. ?Access controls. ?Luggage checking systems; amongst many others Mexico also provides other advantages including the ability to manufacture parts and components for military and defence. The US government traditionally gives protective treatment to American companies in defence deals, leaving foreign suppliers of aircraft parts a 5% duty, on average. As a member of NAFTA, Mexico is excluded from this tax, giving suppliers in Mexico an advantage over suppliers in other countries. UK Presence The UK and Mexico have an increasingly important commercial relationship in this sector. GKN have significant manufacturing operations in Mexicali, San Luis Potosi and Guanajuato, serving the aerospace and engineering sectors. Senior Aerospace (Ketema) has manufacturing operations in Saltillo, Coahuila power generation and aerospace. Doncasters has operations in Monterrey, Nuevo Leon, manufacturing vanes and blades for medical & aerospace. Also, Exova has testing and special processes in Monterrey; it also has an operation in Silao, Guanajuato, providing thermal processes. Bodycote also has a vacuum, heat treatment facility in Sonora. (Remec) has manufacturing operations in Tijuana; and BAE has operations in Sonora and Baja California. Other UK investors include CAV, Trac Group and Meggitt. Latest export opportunities ? Aerospace Latest export opportunities - Mexico Getting into the market It is often beneficial to have a local partner or local presence in Mexico. An interesting characteristic of the market is the growing pressure on the supply chain to become faster and leaner, similar to the automotive industry. This means that key suppliers and partners will have to work more closely in increasing aspects of programme development and production. Cost pressures are also a significant factor, particularly as many of the production elements including metals, composites, tools, utility and energy costs and R&D are becoming more expensive. As a result, many engine manufacturers have established supply chain offices in Mexico developing Tier 2 and Tier 3 suppliers across the country and migrating suppliers from abroad to Mexico. More about doing business in Mexico Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ? Jonathan Clare, Trade and Investment Consul, British Consulate, Monterrey, Tel. +52 (81) 8356 5359 or email: jclare@ukconsulate.org ? Alejandra Rodriguez, Trade and Investment Officer, British Consulate Monterrey, Tel: +52 (81) 8356 5359, Email: arodriguez@ukconsulate.org ? Luis Dario Ochoa, Trade and Investment Officer, British Consulate, Monterrey, Tel. +52 (81) 8356 5359 or email: dochoa@ukconsulate.org ? Carlos Botello, Trade and Investment Officer, British Consulate, Monterrey, Tel. +52 (81) 8356 5359 or email: cbotello@ukconsulate.org Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events ? Aerospace Major Events Farnborough International 2012 http://www.farnborough.com Date: 9-15 July 2012 Useful links More about OMIS and other UKTI services for exporters
Posted: 27 November 2011

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